Dangote signs $3.3b deal for refinery, fertiliser plants

Dangote Group yesterday signed a $3.3billion loan agreement with a consortium of both international and local banks to establish the biggest petroleum oil pefinery and petrochemical/ fertilizer plants in Nigeria.

The projects, which will gulp $9 billion, will generate about 9,500 direct and 25,000 indirect jobs, in addition to reducing current volumes of refined fuel imports by around 50 per cent, and effectively stop the importation of fertiliser. The projects will be financed by $3billion equity and $6billiion loan capital.

With a projected refining capacity 400,000 barrels of crude oil per day (bpd), and producing a variety of refined fuel products from local crude resources, Nigeria will cut its current volumes of imported fuel products by almost 50 per cent.

President of The Group, Aliko Dangote, said: “This plant will further entrench Africa’s role on the global map as not only a valued contributor for natural resources, but also a competent manufacturer of refined products and fertilizer.

He said the Dangote Group would be ready to delve into sectors that are capable of generating the much needed jobs and urged other investors to have abiding faith in the nation’s economy.

The Vice President, Namadi Sambo, who was a special guest at the ceremony, applauded the Dangote Group for supporting the economic agenda of President Jonathan administration, saying the government has created the enabling environment for businesses to thrive in the country.

Also, the Petroleum Minister, Deziani Alison Madueke and the Central Bank Governor, Sanusi Lamido Sanusi, praised the Group for its commitment to driving the economy through its investments.

Sanusi said the refinery deal is a big one in the history of Nigeria, indicating that Nigerian banks are healthier, adding that it was time for Nigerian government discouraged importation and encourage local manufacturing.

The Managing Director/CEO, Guaranty Trust Bank, Segun Agbaje said the deal remains the largest syndication by banks in Nigeria, undertaken with the knowledge that the successful implementation of Dangote Refinery and Fertilizer project will have far reaching implications for Nigeria’s economic growth.

“This project is an historic example of self-empowerment and leadership for the continent as a whole – and is made possible through effective partnerships between the Nigerian private sector, Government and international financial institutions. Standard Chartered remains committed to being here for good in Nigeria, and the region,” CEO, Standard Chartered Bank in Nigeria, Bola Adesola said.

Meanwhile, Dangote has assured that Nigeria’s resort to importation of petroleum products would end by 2016 when the firm’s proposed Dangote refinery and petrochemical project is implemented.

He said: “Now, Nigeria is going to be taken out of the list of countries that import petroleum products. We will produce 20 million metric tones which is currently equivalent to what Nigeria consumes currently.

He said the country currently spends about $30 billion annually on the importation of petroleum products, promising that the execution of the project will not only put an end to the waste associated with fuel importation, but also create jobs for about 85,000 Nigerians at the initial stage, including 8,000 engineers.

In a statement by the Special Adviser on Media, Dr Reuben Abati, the President said the investment in refining, petrochemicals and fertiliser production will contribute significantly to the attainment of his government’s priority objective of job creation.